The European Union automotive sector is experiencing a significant decrease in 2024. Production in the sector decreased by 2.4% in the first quarter of the year, while this decrease reached 7% in the second quarter. The positive pattern from mid-2022 to the end of 2023 is reversed. Among the main reasons for this are uncertainties in electric vehicle production standards for car manufacturers, inadequate charging infrastructure and generally weak market circumstances. High inflation and low household incomes also have a negative impact on demand.
The data for August show that new vehicle registrations in the European Union decreased by 18.3% y/y. This decrease particularly pronounced in Germany by 27.8%, in France by 24.3% and in Italy by 13.4%. Only Spain recorded a more limited decrease of 6.5%.
EUROFER states that in order for the sector to fully recover it requires stable growth in the global economy, an increase in demand from foreign markets, and a strengthening of trust in the European Union's electric vehicle market.
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